# Directional Option Strategies | James Boyd | 9-4-19 Show Video

Bring. That back up. Just. A sec there. We go. Sure. We got that there. We go let's, go back to where we were so, we said we when, we sell these puts we might do something out of the money something, a delta let's say 30 to 40 let's, say we sold it when the delta is 35 if, the Delta now is 43. That's. Actually, now telling, us that the stock has gone down. From. When we entered. The position. What. Does that tell us we, probably, are not profitable, so, if that Delta was 35, and now it's 43. We. Probably don't have any profits lo and behold when, we actually take a look at this we have some profits. It's about \$75. On realized, profits, and when, we look at the percentage, of the maximum gain so far we have about 15, 16 percent, now. If. You take a look at that the. Way we're probably going to have bigger profits. Is not. If the Delta increases. So. If that Delta now we're become 60, or if. The Delta were let's say to become, 80 or so if. The Delta is becoming, bigger it tells us that the stock is really. Gone below. The strike price we sold so, when you're managing these positions, we, want to sell the, strike sell. That put strike we, want the Delta, the decline, the deltas saying what is the likelihood of the stock closing one penny and the money if, the, Delta increases. Stock. Going wrong direction. Technicians. Or an option investor, would like to see that, the. Delta, D. Creases. If that. Delta, were to drop let's say in half, from. 35. Excuse me 35, down. To 17, what. Percent, of the profits, do you probably have you. Probably have about 50 percent of the profits if you, went from 35, and let's. Say you went all the way to let's say a 10 Delta, now, it's saying there's only a 10% chance, of being, out of the money at expiration. What. Percent of the profits do you have you went from 35 Delta, down to 10 Delta well, that probably means you might have 7080, percent of the profits, so again. This is where you're selling them you're selling them out of the money typically, you, might sell them at the money if you want to be a more aggressive or sell them in the money if you want to be really aggressive but. The key is where we started let's say out of the money 30 30 to 40 if, the Delta were to decline that's. Where you have the biggest gains when. We take a look at this position the deltas 44, that, tells us we probably don't have a big chunk of the maximum game now I want you to vote right now I want you to vote if. The Delta now is 44, what. Do you think we're going to do with this position do, you think we're a going. To just let, it go it's. Still, trending, and it's. Not really made a large part of the maximum gain so a leave. It alone be. X. In the position, try to take that \$75. Gain. Or C. Roll the position, tell. Me what you would do. As. I get some comments there I'm, going to go the charts I'm. Gonna actually bring up let's say the. Recent let's actually see if we can't bring up the position, let's, pull this up and you might be thinking well James you didn't show me the trend yet well, let's actually bring, up that trend and let's, just take a quick look at what we can see on that chart so. There. We go. Now. When, we actually take a look at the chart we zoom, in on this here's Apple so, what you'll notice is on the chart it's still really showing.